Question

What types of challenges do firms run into when increasing the quality of their product or service?

Answer 1

In current growing worls, quality is the most considered term attached with each product or service being rendered or delivered. With the enormous competition around the globe, quality is something which shall be ticked in the box everytime a product or service is being provided or supplied.

With maintaining and increasing the quality consistently, also come the challenges which a business and its responsible persons has to face so as to successfully cover all the major quality aspects

Challenges faced by the firms in increasing their quality of product or services are as follows:

1. Customer Demands & Satisfaction :  Consumer products are consumer focused. Demand fluctuates very quickly. Consumer preferences altered greatly in recent years since demand moves towards sustainable groups. It is very crucial for a firm to know its clients, customers, and consumers and meet their expectations, needs, preferences, etc of the product or service ought to be delivered.

2. Profit Margins : Adding more fuel always costs you more. Similarly, ensuring better quality increases the costs of the business in doing so. While increasing the quality of the product or service, a firm has to focus on maintaining its profit equilibrium, since adding qualtity will lead to additional expenses also, which needs to be monitored so that profitability is maintained.

3. Compliance to Laws and Regulations: Nowadays, maintaining quality has also became a legal for most of the produts and services being given. Quality for such products needs to be maintained as per the government norms and regulations prevailing at the time.

4. Market Competition: With increasing competition in the world, quality is something which gives business a leading and upper edge to sustain and survive in the market. Quality products are generally preferred over the products which are low in quality compared to such product/service.

5. Ensuring after sales quality: Maintaining quality not finishes at the time when product or service is supplied, it continues even after it. After sales quality assurance is also an emerging factor of increasing quality prospectives. Products or service having better quality assurance, guarantees and warranties after sales are tend to have higher demand as compared to its substitutes.